Automotive Inverter Market Size, Share, and Industry Analysis, By Propulsion (HEV and BEV), By Vehicle Type (SUVs, Sedan/Hatchback, Light Commercial Vehicle, and Heavy Commercial Vehicle), By Component (Inverter Bridge, Filter Circuit, Oscillator, and Others), and Regional Forecast, 2024-2032

An Automotive Inverter is a vehicle component or a device that acts as a bridge between the battery and the electric motor used in vehicles. An automotive inverter is a device that converts direct current (DC) from a vehicle's battery into alternating current (AC), which can power various electronic devices and appliances inside the vehicle. These inverters are typically used to run devices, such as laptops, smartphones, refrigerators, or other small electrical appliances while on the road.

A significant trend that drove the market growth of automotive inverters is the adoption of electric vehicles in the past few years. Rapid technological trends in vehicle electrification technology post-pandemic accentuated the overall technology adoption and heightened consumer willingness to opt for electric vehicles over conventional ICE-powered vehicles. Furthermore, increasing government initiatives toward the promotion of zero carbon emission technology are creating more demand for electric vehicles and electrification technology than ever.

The COVID-19 pandemic had a significant impact on the global automotive inverter market. Lockdowns, restrictions in travel, and economic uncertainty declined demand for automotive inverters, particularly in regions heavily affected by the virus. Production and supply chain disruptions also affected manufacturers, leading to delays and inventory challenges. However, even with the slower production rate and delays in deliveries of vehicles, the market witnessed rapid demand for EV components due to growing sales of EVs post-pandemic.

Segmentation

Key Insights

The report covers the following key insights:

• Latest Developments
• Porter's Five Forces Analysis.
• Technological Developments
• Impact of COVID-19 on the Automotive Inverter Market

Analysis by Propulsion

By propulsion,  the market is bifurcated into HEV and BEV. Inverters for HEVs are designed to convert DC power from the battery to AC power for the electric motor and vice versa. The demand for HEV inverters is driven by the need to enhance fuel efficiency and reduce emissions without completely relying on electric propulsion. HEVs use inverters to optimize the internal combustion engine and electric motor performance, contributing to their market growth. The HEV segment is significant due to its role in the transitional phase toward full electrification, offering a balance between traditional and electric propulsion.

BEVs rely entirely on battery power, making the inverter a crucial component for converting DC battery power into AC power for the electric motors. The growing popularity of BEVs, driven by advancements in battery technology and increasing environmental awareness, is significantly boosting the demand for high-performance inverters. The BEV segment is expanding rapidly as automakers shift toward producing more electric vehicles to meet stringent emission regulations and consumer demand for zero-emission transportation.

Analysis by Vehicle Type

By vehicle type, the market is divided into SUVs, sedans/hatchbacks, light commercial vehicle, and heavy commercial vehicle. The SUV vehicle type accounted for the largest market share in 2023. The increasing consumer preference for sport utility vehicles due to their robust build and ease of driving on various terrains further makes them suitable for multiple operations. Heavy Commercial vehicle segments are likely to grow at the fastest growth rate during the upcoming years owing to the rapid integration of electrification technologies for commercial vehicles and negating the carbon footprint of the transportation and cargo delivery industry.

Regional Analysis

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The global market is geographically segmented into North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific is attributed to dominating the market due to greater demand for vehicles in various Asian countries. China is anticipated to dominate the market in terms of market share owing to a greater capacity of Chinese auto OEM suppliers to pace up technological development and increased support from the government toward necessary infrastructure changes to support new technological adoption, which are some of the significant factors influencing the growth. Similarly, increased deployment of EV models and consumer willingness toward switching to electrification technology in vehicles in various other Asian countries, such as Japan, South Korea, India, and Indonesia, are further contributing toward the larger market share of this region.

Key Players Covered

Key players in the market include Danfoss, NXP Semiconductors, GKN Automotive, Eaton, Infineon Technologies AG, Denso Corporation, E-Mobility Engineering, Marelli Corporation, Valeo SA, and Mitsubishi Electric.

Key Industry Developments

• In March 2024, BorgWarner, a leading supplier of auto components, recently announced that the company has expanded its product portfolio by introducing dual inverters, and the company will aim to target the Chinese automotive market with this new addition. The company identifies the growing demand for electric vehicles in the country and aims to expand its market presence in Asian automotive markets with this new product.
• In February 2024, McClaren announced that the company recently launched its latest silicon carbide inverter, IPG5-x. The company aims to fulfill the demand from auto OEMs for high-performance EV inverters for high-end luxurious vehicles with the new high-performance product.